What is an energy performance certificate?

An EPC is an official document that shows how energy efficient a building is. It grades the property using an EPC rating from A (most energy efficient) to G (least energy efficient).

Each performance certificate includes:

• The current energy efficiency rating.
• A potential rating if recommended improvements are made.
• Estimated energy costs and running costs.
• A detailed breakdown of energy use.
• Recommendations to improve the building’s energy efficiency.

The EPC system is part of UK energy performance regulations designed to improve energy efficiency across domestic and commercial buildings.

An EPC is a legal requirement when a property is sold, let or built, unless a valid exemption applies.

Is an EPC required for business properties?

Most commercial properties must have a valid EPC certificate before they can be marketed to prospective tenants or buyers.

This applies to:

• Offices and retail premises.
• Hospitality venues.
• Warehouses and industrial units.
• Care homes and mixed-use properties.

The EPC must be available at the point of estate agent marketing, not after an agreement has been reached.

Who carries out an EPC assessment?

An EPC must be completed by an accredited assessor qualified to assess commercial buildings. For business premises, this will be a non-domestic energy assessor registered with a government-approved accrediting body.

These assessors are trained to evaluate how efficiently a commercial property uses energy. During the EPC assessment, they will review factors such as:

• Heating controls and fuel types used across the building.
• Lighting systems and overall lighting efficiency.
• Levels of heat loss through walls, roofs and windows.
• Renewable technologies in place, including solar panels where installed.

Once the assessment is complete, the assessor produces the EPC report and lodges it on the official register, confirming the property’s EPC rating and recommendations to improve energy performance.

Minimum energy efficiency standards for businesses

The minimum energy efficiency standards (MEES) apply to many rented commercial properties in England and Wales.

In most cases:

• Commercial properties must currently achieve at least an E rating to be legally let.
• Properties rated F or G are classed as sub-standard and may require energy efficiency improvements or a registered exemption before they can be leased.

The government has confirmed its intention to tighten these standards. From April 2027, the minimum EPC requirement for rented commercial properties is expected to rise to a C rating, subject to final implementation and exemptions. This means many businesses and landlords will need to plan upgrades well in advance.

Failing to comply with MEES can result in enforcement action, financial penalties, and restrictions on letting the property.

What does an EPC report cover?

An EPC report covers all major contributors to energy use, including:

• Heating systems and hot water system efficiency.
• Lighting type and controls.
• Building fabric and heat loss.
• Insulation present.
• Renewable technologies.

It also includes estimated energy costs and outlines how much energy the building is likely to use under standard conditions.

How EPC ratings affect energy bills

A poor property’s EPC rating often links directly to higher energy bills.

Buildings with low energy efficiency typically:

• Use more energy to maintain temperature.
• Have higher running costs.
• Produce a larger carbon footprint.

Improving energy performance can help businesses save energy, save money and reduce exposure to volatile wholesale prices.

EPC benefits for businesses

While EPCs are a compliance requirement, they also offer practical benefits for businesses and commercial property owners.

An EPC provides:

• Clear insight into energy performance, showing how efficiently a building uses energy and where losses are likely to occur.
• Identification of cost-effective improvements, helping businesses prioritise upgrades that can reduce energy use and running costs over time.
• Support for long-term energy planning, giving decision-makers a clearer view of how building efficiency links to future energy demand and expenditure.
• Improved appeal to prospective buyers and tenants, as stronger EPC ratings can make commercial properties more attractive in a market that increasingly considers energy performance and operating costs.

Used properly, an EPC can support more informed decisions around property management, refurbishment and energy procurement.

EPCs and commercial energy costs

While EPCs focus on how efficiently a building uses energy, your energy contract still has a major influence on what you actually pay.

Even a highly efficient commercial property can face unnecessarily high costs if it is on:

• Out-of-contract rates, which are typically among the most expensive tariffs available.
• Deemed tariffs, often applied when a property changes occupancy without a new contract in place.
• Poorly timed renewals, where contracts are agreed without reference to current market conditions.

This is why regular energy reviews matter. Combining EPC insight with active contract management helps businesses control costs more effectively, avoid expensive default rates and make better-informed decisions about energy procurement.